Retirement Planning: Civilian Deposit and Redeposit Service

Have you had prior federal service where you were not covered by a federal retirement system or have you taken a refund of prior retirement contributions?

Deposit service occurs when an employee works in an appointment that is not eligible for retirement. Once an employee is hired into a retirement eligible appointment, they may be eligible to pay the deposit for the prior service to count towards retirement. Note: FERS employees cannot make deposits for temporary service performed after 12/31/1988.

Redeposit service occurs when an employee leaves federal service and requests a refund of the retirement contributions from OPM that were deposited into their retirement fund. When an employee returns to federal service, they may be eligible to pay this money back for this service to count towards retirement.

You may have federal civilian deposit or redeposit service if you…

• Previously received a refund of your CSRS/FERS retirement contributions.
• Had a previous temporary, term, or indefinite appointment.
• Were previously on an intermittent work schedule.
• Have prior service with Peace Corps (employees must request certification from Peace Corps).

Possible Effects of Unpaid Deposits and Redeposits?

• No credit toward retirement eligibility.
• No credit in the computation of your retirement annuity.
• Permanent reduction in your retirement annuity.

What Happens Next

If you think you have this type of service, contact your Servicing Benefits Specialist below to request an estimate of the amount owed and find out what the next steps are. Your Benefits Specialist will provide you with the estimate and the forms you need to make a service credit payment to OPM.

OPM will provide a statement directly to you with the balance and payment instructions. This is not an obligation to make the deposit, however, it will provide you with the information to make a financially informed decision. You can either pay the lump sum amount or make installment payments. These payments are made directly to OPM and cannot be made via payroll deduction. Each time OPM receives a payment they issue a statement with the new balance. Save your statements and provide a copy of the final paid in full statement showing zero balance to your Servicing Benefits Specialist.

Timeliness matters as interest accrues on any unpaid amount. It will take several months to receive your initial statement as OPM has a backlog of these applications. Waiting close to or after you retire may make your payment higher and result in a delay of the final processing of your retirement package at OPM. Your Servicing Benefits Specialist can assist you with any questions you may have.